ISLAMABAD: Pakistan Tobacco Company (PTC) has expressed concerns over recent media misinformation regarding alleged tax losses to the national exchequer due to non-payment of taxes by legitimate tobacco companies.
In a statement released on Friday, the PTC officials said that an Islamabad-based think tank’s figures regarding a significant revenue loss of around Rs 567 billion by legitimate tobacco companies are incorrect and detached from reality.
They clarified that the reported figure represents an accumulated loss over a decade and does not accurately reflect the current scenario. The primary loss to the Government of Pakistan stems from tax evasion by illicit tobacco manufacturers, as the legitimate industry diligently fulfills all tax obligations, read the statement.
PTC representatives raised doubts about the credibility of the report, which they believe downplays the impact of the illicit tobacco trade. They highlighted the positive impact of the 3-tier tax system introduced in 2017, which helped increase revenues, reduce the illicit market share, and create a level playing field for the industry.
Concerns were also voiced about the portrayal of the legitimate tobacco industry in public discourse, which may influence policy decisions favoring non-compliant entities. PTC emphasized their commitment to regulatory compliance, including implementing the Track and Trace System (TTS), and stressed the need for a fair competitive environment to ensure sustainability for the legitimate sector.
The statement also mentioned PTC’s recognition as one of Pakistan’s top tax-paying entities, reflecting their adherence to laws and corporate responsibility.
They also called on for law enforcement agencies to take decisive action against illicit cigarette trade to prevent annual losses of Rs 300 billion to the government.
